Two U.S. Banks Included In “The World’s 20 Strongest Banks”

A short number of years ago the “too big to fail banks” had to be bailed out with trillions of dollars in financial aid from both the taxpayers and the Federal Reserve.  At one point there were serious discussions about nationalizing the entire U.S. banking industry. As a sign of how rapidly America’s largest banks […]

Parkway Bank, NC, Closed By Regulators

Parkway Bank, a North Carolina chartered bank headquartered in Lenoir, NC, was closed today by state regulators.  Acting as receiver, the FDIC entered into a purchase and assumption agreement with CertusBank, N.A., Easley, South Carolina, which will assume all deposits of Parkway Bank. Founded in 2001, Parkway Bank has been a problem bank for regulators […]

Feds Approve FirstMerit Corp Acquisition of Citizens Republic Bancorp

The Federal Reserve today issued an order approving the acquisition of Citizens Republic Bancorp by FirstMerit Corporation. FirstMerit Corp, which had announced the acquisition last September was waiting for regulatory approval before consummating the transaction which is still subject to shareholder approval.  Completion of the acquisition is expected to occur in the second quarter of […]

Fed Says Largest Banks Would Lose Half Trillion Dollars Under Adverse Economic Conditions

Based on the results of the Federal Reserve’s stress tests, the nation’s 18 largest banks would collectively lose a massive $462 billion under an extremely adverse hypothetical economic scenario. Reflecting the severity of the stress scenario–which includes a peak unemployment rate of 12.1 percent, a drop in equity prices of more than 50 percent, a […]

Number of Banks on FDIC Problem Bank List Remains Historically High

The number of banks on the FDIC Problem Bank List declined for the seventh consecutive quarter.  According to the latest FDIC Quarterly Banking Profile, the number of problem banks as of December 31, 2012, declined to 651 from 694 in the previous quarter. Despite significant recovery in the banking industry, the number of problem banks […]

Bank “Stress Tests” Results Due In March – Don’t Expect Anyone To Fail

Under the Dodd-Frank Act, the Federal Reserve is required to conduct stress tests which are forward-looking exercises to determine whether large institutions have sufficient capital to absorb large losses and support operations under severely adverse economic conditions. The supervisory stress tests include examining capital ratios, revenue and the size of potential losses.  The Federal Reserve […]

FDIC Issues 71 Enforcement Actions Against Banks and Individuals In December

The FDIC today issued the list of 71 enforcement actions taken against banks and individuals in December 2012.  In the previous month, there were a total of 72 enforcement actions taken. The December enforcement actions include the following: 11 consent orders 1 prompt corrective action 13 civil money penalties 12 section 19 orders 14 orders […]

The Rally In Big Bank Stocks May Be Over

For over the past year, the stocks of big banks have rallied significantly.  Lower loan losses, a stabilization of the real estate market and a settlement with the government over shortcomings in foreclosure proceedings have all contributed to a growing conviction by investors that the worst is over for the banking industry. Here’s a look […]

1st Regents Bank, Andover, MN, Closed By Regulators

1st Regents Bank, Andover, MN, was closed today by the FDIC  and state regulators.  In its role as receiver, the FDIC sold the failed bank to First Minnesota Bank, Minnetonka, MN, which will assume all deposits of 1st Regents. Established in May 2001, 1st Regents was a small bank with only $50.2 million in total […]

Westside Community Bank, Washington, Closed By Regulators – First Bank Failure of 2013

Westside Community Bank, University Place, Washington, became the first bank closing of 2013.  Regulators from the Washington State Department of Financial Institutions closed the bank today and appointed the FDIC as receiver.  To protect depositors, the FDIC sold failed Westside Community Bank to Sunwest Bank, Irvine, CA. Westside Community Bank was established in March 1995.  […]